Tata Teleservices subsidiary to raise Rs 3,000 crore from promoter

NEW DELHI: Tata Teleservices (Maharashtra) will raise up to Rs 3,000 crore from its promoter Tata Teleservices through allotment of preferential equities.

"Board of directors of the company at its meeting held on June 25, 2016, has considered and approved issue of redeemable preference shares up to an amount of Rs 3,000 crore to Tata Teleservices Limited (Promoter) on preferential basis," Tata Teleservices Maharashtra (TTML) said in a regulatory filing.

The allotment has to be approved by shareholders.

TTML, which operates mobile services in Maharashtra, including Mumbai circle, and Goa narrowed its standalone loss to Rs 159.3 crore for the March quarter in 2016, from Rs 163.9 crore a year ago. Its standalone loss for 2015-16 too came down to Rs 497.9 crore, from Rs 615.3 crore.

The company, whose telecom licence is expiring in September 2017, has recorded a provision for impairment of CDMA fixed assets of Rs 29 crore.

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After PSU banks, the government is likely to infuse capital in two chronically ill telecom PSUs BSNL and MTNL, and the Union Cabinet is likely to take a decision on 4G spectrum allocation to them by the third week of the current month after DoT places the note before it for consideration.

At a high-level meeting at the PMO late Tuesday, it was also decided that the two telcos will frame a Voluntary Retirement Scheme (VRS) to reduce their employee strength, which will be followed by a reduction in the retirement age to 58.